Q1 2022: Net sales rise 11% (+15% constant exchange rates, or CER) to $628.4 million vs. outlook for at least 7% CER growth; diluted EPS of $0.67 and adjusted diluted EPS of $0.80 ($0.83 CER) vs. outlook for at least $0.72 CER
14% CER rise in non-COVID sales, while COVID-19 sales grow 18% CER
Operating cash flow rises 61% to $207 million, free cash flow increases 116% to $178 million
2022 net sales outlook raised to at least $2.12 billion CER, reaffirmed double-digit CER growth in non-COVID products; adj. diluted EPS outlook raised to at least $2.14 CER
VENLO, the NetherlandsQIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced results for the first quarter of 2022 and increased the outlook for full-year 2022.
Net sales for Q1 2022 rose 11% (+15% CER) from Q1 2021 to $628.4 million, ahead of the outlook for at least 7% CER growth. Sales were driven by 14% CER growth in the non-COVID-19 product portfolio and an 18% CER rise in sales of products used for COVID-19 testing and surveillance. Adjusted diluted earnings per share (EPS) rose to $0.80 ($0.83 CER) from $0.66 in Q1 2021, and above the outlook for at least $0.72 CER.
Based on the strong start to the year, QIAGEN has increased its full-year 2022 net sales outlook to at least $2.12 billion CER and for adjusted diluted EPS of at least $2.14 CER.
The updated outlook reflects a reaffirmation of the previous goal for double-digit CER sales growth from the non-COVID product groups, but for a significant year-on-year decline in COVID-19 product group sales based on the expected volatile pandemic trends in 2022. Also taken into consideration was an updated assessment of current inflation and macro-economic trends. This included the adverse impact of anticipated lost sales in 2022 from Russia, Ukraine and Belarus as a result of the war in Ukraine. These countries represented approximately 1% of total QIAGEN sales in 2021. QIAGEN continues to make ongoing investments into its portfolio, in particular the five pillars of growth, for new products, test menu and applications. This outlook does not take into consideration any future acquisitions.
"QIAGEN is off to a strong start in 2022, led by the solid performance of our non-COVID product portfolio in the first quarter driven by a focus on execution against our goals. These results have also reaffirmed our confidence in double-digit CER sales growth for 2022 from these products, which form the basis for our mid-term growth ambitions," said Thierry Bernard, Chief Executive Officer of QIAGEN N.V. "This performance in the first quarter has set a solid stage for continued execution in an increasingly volatile environment while our proactive initiatives have helped to build resilience into our business."
"Our teams of empowered QIAGENers are focused on delivering on our promises for future growth. We continue to execute, quarter after quarter, from sales goals to project development. We continue to develop a well-balanced portfolio between Life Science and Molecular Diagnostics customers, across our different regions, and also between our five pillars of growth and our core business." Bernard said.
Roland Sackers, Chief Financial Officer of QIAGEN N.V., said: “Our results for the first quarter of 2022 show the power of QIAGEN with strong sales growth, improved profitability and operating cash flow over the same period in 2021. We are confident that investments into our portfolio are creating value and positioning QIAGEN toward new growth waves in the coming years. We continue to review opportunities for capital deployment, including bolt-on acquisitions, that are aligned with our strategy and set to create greater value for shareholders and our other stakeholders.”
A conference call is planned for Thursday, April 28, 2022, at 16:00 Frankfurt Time / 15:00 London Time / 10:00 New York Time. A live audio webcast will be made available in the investor relations section of the QIAGEN website, and a replay will also be made available after the event. A presentation is planned to be available shortly before the conference call at https://corporate.qiagen.com/investor-relations/events-and-presentations/default.aspx.
QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare) and Life Sciences (academia, pharma R&D and industrial applications, primarily forensics). As of March 31, 2022, QIAGEN employed more than 6,000 people in over 35 locations worldwide. Further information can be found at http://www.qiagen.com.
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products, including those products used in the response to the COVID-19 pandemic, timing for launch and development, marketing and/or regulatory approvals, financial and operational outlook, growth and expansion, collaborations, markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and the integration of acquired technologies and businesses; actions of governments, global or regional economic developments, weather or transportation delays, natural disasters, political or public health crises, including the breadth and duration of the COVID-19 pandemic and its impact on the demand for our products and other aspects of our business, or other force majeure events; as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected; and the other factors discussed under the heading “Risk Factors” contained in Item 3 of our most recent Annual Report on Form 20-F. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.